I receive checks from an insurance company. From that check I have to give my customer a percentage and our company keeps the balance. How do I accomplish this?

By creating bank deposits in QuickBooks, you can record check transactions, customer percentages, and company balances. I'm here to provide more information on this.

Accurately recording all check transactions is essential for maintaining the integrity of your financial records. This practice is crucial for tracking cash flow, reconciling bank accounts, and producing accurate financial statements. You can follow the steps below on how to record this:

1. Click on + New and choose Bank Deposit.
2. From the Account dropdown menu, select the account where you want to deposit the money.
3. In the deposit screen or under the payment details:
   • Account: Choose an account that reflects where the money is initially going, typically a bank account.
   • Amount: Enter the full amount of the check.
4. Below the line where you entered the full amount:
   • Account: Choose an expense account that reflects the portion you pay to the customer (e.g., "Customer Reimbursements" or something similar).
   • Amount: Enter the amount you give to the customer but as a negative number. This will be deducted from the total amount received.
5. The remaining balance (the amount kept by the company) will automatically be computed based on the total check less the customer share.
   

    

Consider consulting your accountant when selecting account types as they can offer valuable insights to guide your business decisions.

You can also utilize this article as a detailed guide to record bank deposits in QuickBooks Online (QBO): Record and make bank deposits in QuickBooks.

Here are some helpful articles for running reports or reconciling accounts in QuickBooks Online:

• Run a Report in QuickBooks Online
• Reconcile an Account in QuickBooks Online

Additionally, consider scheduling a free consultation with our QuickBooks Live Expert Assisted. They can offer valuable tips and guidance for managing your QuickBooks Online account.

As always, we are committed and eager to help if you have any inquiries or concerns about recording and managing your transactions. Please save this thread or get back to us by hitting the Reply button below, and I'll be glad to offer a helping hand. 

@claims1 

The response from @ClaireSamanthaS won't work because your deposit amount will be just your portion of the insurance proceeds and you won't be able to reconcile the deposit to your bank transaction.

The proper way to to record this is to make a single bank deposit with two separate categories:

Line 1) Assign your portion to an Other Income account called 'Gain on Insurance Proceeds' or something similar.

Line 2) Assign the customer's portion to an other current liability account.  You can create one called 'Due to Customer XYZ' or something similar. 

That will increase your bank account by the total amount received from the insurance company split between your income and what you owe your customer.  Then, issue payment to your customer and assign the same liability account to the payment that you assigned to the customer's portion of the deposit.  That reduces your bank account and zeroes out the liability account for the amount you owe your customer.  You should be all set.